McDonald’s ended its franchise agreement with its Sri Lankan partner, closing all 12 local outlets.
The company’s legal spokesperson, Sanath Wijewardane, announced the split from the franchisee, Abans, due to “standard issues.” Wijewardane hinted at McDonald’s potential return to Sri Lanka with a new partner.
Despite the formal end of the agreement on a Wednesday, McDonald’s outlets operated for several days afterwards. Abans has not commented on the situation.
The reasons for the termination are unclear, though local media suggest it involves hygiene concerns, leading McDonald’s to sue Abans.
Since 1998, McDonald’s and Abans have partnered, which is now ending as Sri Lanka recovers from a severe financial crisis. This event highlights the challenges global brands face in upholding standards worldwide. McDonald’s possible re-entry into Sri Lanka with a new franchisee is anticipated, indicating a chance to rebuild its presence and reputation.
